Gates Industrial Corporation plc (GTES)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,415,000 | 2,426,400 | 2,526,500 | 2,666,000 | 2,912,300 |
| Total stockholders’ equity | US$ in thousands | 3,220,200 | 3,110,000 | 3,099,700 | 2,805,700 | 2,651,000 |
| Debt-to-capital ratio | 0.43 | 0.44 | 0.45 | 0.49 | 0.52 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,415,000K ÷ ($2,415,000K + $3,220,200K)
= 0.43
The debt-to-capital ratio of Gates Industrial Corporation plc has been showing a trend of gradual decline over the past five years. The ratio has decreased from 0.52 in 2019 to 0.43 in 2023. This indicates that the company's reliance on debt to finance its operations relative to its total capital has been decreasing over time. A lower debt-to-capital ratio is generally seen as a positive indicator as it suggests that the company has a healthier balance between debt and equity in its capital structure. This trend may signify improved financial stability and a potentially reduced risk of financial distress for the company. Overall, the decreasing trend in the debt-to-capital ratio for Gates Industrial Corporation plc is a positive signal for investors and stakeholders.
Peer comparison
Dec 31, 2023